Administrators have provided further insight into the collapse of Waterline, citing reduced consumer spending and a lack of long-term funding as key factors behind the company’s move into administration last week.
They also confirmed there was “no appetite” from buyers to acquire the business as a going concern, thus sealing the fate in the collapse of Waterline, one of the UK's largest appliance suppliers.
Following the administration, 105 redundancies have been confirmed, with a core team of 15 employees retained to assist with the wind-down process.
Joint administrators Alex Cadwallader and Dane O’Hara of Leonard Curtis said the company experienced “exceptional” growth during the pandemic-driven boom between 2021 and 2022, before entering a period of decline. This downturn was attributed to several macroeconomic pressures, including the easing of Covid restrictions, rising interest rates, and the ongoing cost-of-living crisis, all of which contributed to reduced consumer spending.
As trading conditions worsened, Waterline became increasingly reliant on shareholder funding, which was deemed unsustainable from 2025 onwards.
Directors subsequently explored a potential sale of the business but were unable to secure a buyer. With no viable long-term funding in place, restructuring specialists Leonard Curtis were brought in to assess the company’s financial position.
After being formally instructed last month, the firm launched an accelerated mergers and acquisitions process. While there was some interest in specific assets, including stock and intellectual property, no offers were made to purchase the business in its entirety.
Administrators were officially appointed on October 9, after which Leonard Curtis implemented a structured wind-down plan. This included supporting suppliers in reclaiming goods under ‘Retention of Title’ agreements, which allow suppliers to retain ownership until payment is completed.
Alex Cadwallader said the outcome was disappointing, particularly given efforts to secure a sale and protect jobs. However, he noted that ongoing economic pressures within both the wider economy and the sector made this unachievable.
“The board’s priority was to safeguard employment through a going concern sale,” he said. “Despite extensive outreach to both industry and non-industry buyers, this was not possible. As a result, 105 redundancies have been made, with a small team retained to support the closure of the business.”
Meanwhile, key suppliers have moved to reassure retailers following Waterline’s collapse, amid concerns over supply continuity and outstanding orders.
Franke UK confirmed it has implemented contingency measures to maintain availability of its sink, tap and appliance ranges across the UK. Orders are now being fulfilled through its distribution network, with Sinks & Things covering England and Wales, Forth & Clyde handling Scotland, and Bodel and Gowan Home continuing operations in Northern Ireland and the Republic of Ireland.
Other well known appliance brands responding to the collapse of Waterline, include the likes of lighting specialist Sensio, InSinkErator, Aga Rangemaster, Samsung have offered reassurances of continued supply and product availability, as has BHS, the group behind Bosch, Siemens, Gaggenau and Neff.
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